TAL Education Group
TAL Education Group Fundamental Analysis
TAL Education Group (TAL) shows moderate financial fundamentals with a PE ratio of 7.03, profit margin of 9.89%, and ROE of 7.82%. The company generates $9.3B in annual revenue with strong year-over-year growth of 50.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TAL's fundamental strength across five key dimensions:
Efficiency Score
WeakTAL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTAL trades at attractive valuation levels.
Growth Score
ExcellentTAL delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTAL maintains a strong and stable balance sheet.
Profitability Score
WeakTAL struggles to sustain strong margins.
Key Financial Metrics
Is TAL Expensive or Cheap?
P/E Ratio
TAL trades at 7.03 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TAL's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values TAL Education Group at 0.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 27.79 times EBITDA. This signals the market has high growth expectations.
How Well Does TAL Make Money?
Net Profit Margin
For every $100 in sales, TAL Education Group keeps $9.89 as profit after all expenses.
Operating Margin
Core operations generate 6.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.82 in profit for every $100 of shareholder equity.
ROA
TAL Education Group generates $4.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TAL Education Group produces operating cash flow of $1.45B, showing steady but balanced cash generation.
Free Cash Flow
TAL Education Group generates strong free cash flow of $1.45B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.39 in free cash annually.
FCF Yield
TAL converts 6.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How TAL Stacks Against Its Sector Peers
| Metric | TAL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.03 | 23.01 | Better (Cheaper) |
| ROE | 7.82% | 1228.00% | Weak |
| Net Margin | 9.89% | -4008.00% (disorted) | Weak |
| Debt/Equity | 0.19 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 2.07 | 2.35 | Strong Liquidity |
| ROA | 4.71% | -157547.00% (disorted) | Weak |
TAL outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TAL Education Group's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-34.10%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
167.59%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-55.43%
Industry Style: Defensive, Dividend, Low Volatility
Declining